Cost Breakdown in Bids

Cost Breakdown in Bids

The Cost Breakdown feature in 14Build ensures transparency and clarity during the bid submission process. Contractors submitting a Request to Supply (RTS) can provide a detailed breakdown of their proposed costs, helping clients understand how the total bid amount is allocated.

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1. Overview of Cost Breakdown

A Cost Breakdown includes:

1. Material Costs: Itemized list of materials, quantities, and unit rates.
2. Labor Costs: Staff details, estimated hours, hourly rates, and total labor costs.
3. Service Costs: Additional services such as machinery, logistics, or subcontractors.
4. Overheads: Any miscellaneous costs (e.g., permits, insurance, and taxes).

Why is Cost Breakdown Important?

• Transparency: Clients see exactly how the bid is calculated.
• Competitive Bidding: Contractors can justify their pricing.
• Decision-Making: Clients can compare cost structures across multiple bids.

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2. How Contractors Add a Cost Breakdown

Step 1: Access the Tender Submission Form

1. Navigate to the Tender Dashboard.
2. Select the RFP you want to bid on.
3. Click Submit Bid to access the RTS submission form.

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Step 2: Add Material Costs

1. In the Material Costs section, input the following:

Field	Description	Example
Material Name	Name of the material.	Concrete (30 MPa)
Unit	Measurement unit (e.g., m³, kg).	m³
Quantity	Required amount.	50
Unit Rate ($)	Cost per unit of the material.	$120
Total Cost ($)	Auto-calculated: Quantity × Rate.	$6,000

Example JSON Input:

{
  "materials": [
    { "name": "Concrete (30 MPa)", "unit": "m³", "quantity": 50, "unit_rate": 120, "total_cost": 6000 },
    { "name": "Reinforcement Steel", "unit": "kg", "quantity": 200, "unit_rate": 2.5, "total_cost": 500 }
  ]
}

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Step 3: Add Labor Costs

1. In the Labor Costs section, input the following details:

Field	Description	Example
Role	Job role or description.	Excavator Operator
Staff Count	Number of staff assigned.	2
Estimated Hours	Total estimated work hours.	100
Hourly Rate ($)	Hourly wage per staff member.	$25
Total Cost ($)	Auto-calculated: Hours × Rate.	$5,000

Example JSON Input:

{
  "labor": [
    { "role": "Excavator Operator", "staff_count": 2, "hours": 100, "hourly_rate": 25, "total_cost": 5000 },
    { "role": "Concrete Worker", "staff_count": 4, "hours": 80, "hourly_rate": 20, "total_cost": 6400 }
  ]
}

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Step 4: Add Service Costs

1. In the Service Costs section, specify additional costs:

Service	Description	Cost ($)
Machinery	Excavation machinery rental.	$2,000
Logistics	Transport and delivery fees.	$1,500
Permits & Insurance	Regulatory and administrative costs.	$1,000

Example JSON Input:

{
  "services": [
    { "service": "Machinery Rental", "description": "Excavation machinery rental", "cost": 2000 },
    { "service": "Logistics", "description": "Transport and delivery fees", "cost": 1500 },
    { "service": "Permits", "description": "Construction permits and insurance", "cost": 1000 }
  ]
}

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Step 5: Review and Submit

1. Review the Total Cost Summary, which auto-calculates the total:

Cost Category	Amount ($)
Materials	$6,500
Labor	$11,400
Services	$4,500
Overheads	$1,000
Grand Total	$23,400

2. Click Submit Bid to finalize the RTS submission.

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3. Example Final Cost Breakdown Record

{
  "tender_id": "tender-12345",
  "contractor_id": "user-56789",
  "cost_breakdown": {
    "materials": [
      { "name": "Concrete (30 MPa)", "unit": "m³", "quantity": 50, "unit_rate": 120, "total_cost": 6000 },
      { "name": "Reinforcement Steel", "unit": "kg", "quantity": 200, "unit_rate": 2.5, "total_cost": 500 }
    ],
    "labor": [
      { "role": "Excavator Operator", "staff_count": 2, "hours": 100, "hourly_rate": 25, "total_cost": 5000 },
      { "role": "Concrete Worker", "staff_count": 4, "hours": 80, "hourly_rate": 20, "total_cost": 6400 }
    ],
    "services": [
      { "service": "Machinery Rental", "description": "Excavation machinery rental", "cost": 2000 },
      { "service": "Logistics", "description": "Transport and delivery fees", "cost": 1500 },
      { "service": "Permits", "description": "Construction permits and insurance", "cost": 1000 }
    ]
  },
  "grand_total": 23400,
  "submitted_at": "2024-06-16T09:00:00Z"
}

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4. Benefits of Cost Breakdown

1. Transparency: Clients understand the cost distribution across labor, materials, and services.
2. Competitive Bidding: Contractors can justify their bids with clear details.
3. Better Evaluation: Clients can evaluate bids side-by-side with granular insights.
4. Streamlined Approval: Helps clients quickly identify fair and compliant bids.

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5. Summary

The Cost Breakdown feature ensures that RTS submissions are:

• Detailed and Transparent: Itemized costs for labor, materials, and services.
• Easy to Evaluate: Structured data allows efficient bid comparison.
• Accurate: Prevents ambiguity and promotes fair bidding practices.

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